Raubex says full-year earnings have plunged

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The company said its ‘rightsizing‘ programme continued in the second half of the year ‘to further reduce capacity in line with the current low level of demand‘

Road-builder Raubex said on Monday that while its full-year earnings would fall by up to 80%, partly because of the dearth of construction projects in SA, its balance sheet remained “strong”.

Headline earnings per share for the year ended February would be between 70% and 80% lower than the prior year, the group said. It expected to declare a final dividend per share of between 15c and 23c, versus 33c in the prior year. The company said it also included a goodwill impairment charge, of R51.5m, linked to the asphalt unit within the road surfacing and rehabilitation division.

On the other hand, Raubex said its materials division, which contributed 54.5% of its operating profit in the previous financial year, “has experienced stable operating conditions”.

 

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